Kounoune Power S.A.

completed

Kounoune Power or the company is to develop, construct, operate and maintain a 67.5 MW Heavy Fuel Oil (HFO)-fired diesel power generation plant located at about 23km east of Dakar, within the Kounoune village (about 1.5km from the village center), in the rural area of Sangalkam, and near the City of Rufisque. The sponsors of the project are: - Matelec S.A.L. (Matelec) of Lebanon, one of the largest companies within the electrical business division of the Doumet group, a diversified industrial and services group operating in the Middle East and North America; and - MHI Equipment Europe B.V. (MEE), a fully owned subsidiary of Mitsubishi Heavy Industries Ltd. (MHI) of Japan. In June 2004, Kounoune Power was selected by Société Nationale d’Electricité du Sénégal (Senelec), Senegal’s state electric utility, as an Independent Power Producer (IPP) to develop the project. The project company will be selling power to Senelec under a 15-year Power Purchase Agreement (PPA) signed in February 2005. Facilities to be developed as part of the Project will include nine diesel generating sets (to generate total 67.5MW), four heat recovery boilers, nine closed air coolers, a short connection to the existing transmission lines, two HFO tanks, and a 6.1 km HFO pipeline from Cap des Biches to the Project site, etc. A €15.2 million loan by IFC and a €5 million partial risk guarantee by the World Bank are being considered to cover part of the total Project cost of €61 million.